Cisco's profits fall by a quarter

Cisco's results were still better than market expectations

Computer firm Cisco Systems has seen its quarterly profits fall by 27%, as its sales have declined in the face of the global economic slump.

For the three months to 24 January, Cisco made a net profit of $1.5bn (£1bn), compared with $2.1bn for the same period a year earlier.

Despite the big fall, the latest profit figure beat market targets, as analysts had expected an even steeper decline.

Cisco's quarterly sales were down 7.5% from a year before to $9.1bn.

The company is the world's largest manufacturer of computer networking equipment.

"The numbers look pretty good, all things considered in the tough environment," said RBC Capital analyst Mark Sue.

Cisco said it would continue with cost cutting efforts.